Bangladesh’s RMG exports to the EU and US markets have increased dramatically over the last decade, owing to competitive pricing, fairly cost labour, large-scale production capability, and improving consumer confidence in the country’s garment sector.
Exports to the EU, the biggest market for Bangladeshi clothing, increased 58.45% to US $ 18.27 billion in 2024 from US $ 11.53 billion in 2015, according to data from Eurostat and the Office of Textiles and Apparel (OTEXA), compiled by the Bangladesh Apparel Exchange (BAE). In a similar vein, RMG shipments to the US—Bangladesh’s top export market—rose 35.87% from US $ 5.4 billion in 2015 to US $ 7.34 billion in 2024.
According to industry experts, if the government guarantees important policy support such as reduced bank interest rates, steady and reasonably priced energy, enhanced port efficiency and reinforced law and order under an elected administration, this boom might continue.
They cautioned that while new EU laws and potential US trade measures could raise future hurdles, automation, design diversification and sustainability standards will be essential to maintain pace.
BGMEA President Mahmud Hasan Khan credited the growth partly to shifting orders from China. “Our efforts will continue to expand exports, but we need government support through reduced interest rates, reliable energy supplies, efficient ports and secure law and order under a stable administration,” he said.
Mohammad Hatem, President of the BKMEA, issued a warning that future EU regulatory frameworks such as the European Green Deal and the Corporate Sustainability Due Diligence Directive (CSDDD), may complicate compliance.
Over the previous 10 years, Europe’s textile imports have consistently increased by 20.47%, according to Mohiuddin Rubel, Managing Director of Bangladesh Textile Exchange. After a brief decline to 14.31% in 2020 due to the Covid-19 pandemic, recovery reached 24.92%.
“Bangladesh mirrored this trend with 58.45% growth over the decade, despite a 17.64% drop during the pandemic. The industry recovered strongly with 48.34% growth by 2024,” he said.
The amount of clothing imported to the US has decreased by 5.30% over the last 10 years, according to Mohiuddin Rubel, who also serves as Additional Managing Director of Denim Expert Ltd.
Vietnam and India saw increases of 32.96% and 34.13%, respectively, while China’s imports decreased by 18.36% and Indonesia’s by 19.82%. In contrast, Bangladesh experienced a 26.62% increase.
Over the course of the decade, global averages of unit prices decreased by 1.71%. Vietnam and Indonesia witnessed increases of 6.64% and 7.38%, while China and India saw decreases of 33.80% and 4.56%. At 38.31%, Cambodia had the biggest rise. Bangladesh likewise saw a growth of 7.30%.
Bangladesh is currently keeping unit prices at a level that is similar to what US consumers pay globally. However, rivals like Vietnam and India are raising their prices per unit by providing more value-added goods, according to Rubel.
